Background and circumstances of the matter (including the property/subject matter under dispute): Starting in April, 2016, in Issue No. 776, 777 and 797, the print media “Next Magazine” under Hong Kong Next Media Publishing Co., Ltd. started to intentionally publish news reports with unverified false content. The action of disregarding journalistic professionalism has severely damaged the company’s public image. On May 3, 2016, OBI filed a civil lawsuit against “Next Magazine” for infringement, requesting compensation to safeguard the legal rights of the Company. OBI received a final decision of dismissal of the case by the Taipei District Court, Taiwan.

Course and progression of handling of the matter: The verdict on the case by Taipei District Court, Taiwan today fails to provide appropriate legal decree on the maliciously distorted false reports by Next Magazine. OBI feels deeply sorry for the decision, and will file an appeal.

Effect on company finances and business and estimated monetary amount of the effect: The operation and financial status of the company remain normal and unaffected.